The legendary hedge fund manager George Soros has recently been explaining his thoughts on why he believes a second major global slowdown is waiting just around the corner. Soros was detailing the full extent of the problems the global economy is facing in an interview published by Bloomberg that took place at an economic forum in Sri Lanka attended by some of the world’s best known financial experts; Soros took the opportunity to explain just why he believes this is the wrong time for investors to seek new opportunities on global markets, according to Bloomberg.
George Soros places many of the problems being seen in Europe and around the world firmly on the shoulders of Russian premier Vladimir Putin and his desire to cling on to power in his country. 2017 should see the first major issues seen in Russia during the rule of Putin, which will include problems with the maturing of major debts built up over the last two decades, and lowered oil prices throughout the world. Soros has been vocal in his criticism of the Putin regime, which has led to his Open Society Foundations charity being banned from operating within the country for security reasons, CNBC reports. The view of Soros that Russia is driving the refugee crisis in Europe with its continued bombing of civilian targets in Syria has the power to bring down the entire European Union is shared by German Chancellor Angela Merkel, and a growing band of financial and political experts around the world.
Russia is not the only area of the world to be experiencing major difficulties with its economy, which it would rather keep hidden. In the Bloomberg interview the issues facing the Chinese economy were discussed at great detail, including the changing face of one of the world’s most important economies; George Soros explained the Chinese economy has recently shifted from a manufacturing and investment base to one driven by the service industry and consumption. In the view of the man credited with causing the devaluation of the British Pound in 1992 Chinese economic officials have so far failed to handle the problems they face in the correct way; George Soros explained continuing to push more currency into the economy and lower interest rates would push the global economy to the brink of a 2008 style collapse.